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AI will kill middle-ground media, but raw content will thrive

Advertising is heading for a split future. By 2030, brands will run hyper-personalised AI campaigns or embrace raw human storytelling. Everything in between will vanish.

AI-driven advertising will go far beyond text-to-image gimmicks. These adaptive systems will combine social trends, search habits, and first-party data to create millions of real-time ad variations.

The opposite approach will lean into imperfection, featuring unpolished TikToks, founder-shot iPhone videos, and authentic and alive content. Audiences reward authenticity over carefully scripted, generic campaigns.

Mid-tier, polished, forgettable, creative work will be the first to fade away. AI can replicate it instantly, and audiences will scroll past it without noticing.

Marketers must now pick a side: feed AI with data and scale personalisation, or double down on community-driven, imperfect storytelling. The middle won’t survive.

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US and China reach framework deal on TikTok

The United States and China have reached a tentative ‘framework’ deal on the future of TikTok’s American operations, US Treasury Secretary Scott Bessent confirmed during trade talks in Madrid. The agreement, which still requires the approval of Presidents Donald Trump and Xi Jinping, is aimed at resolving a looming deadline that could see the video-sharing app banned in the US unless its Chinese owner ByteDance sells its American division.

US officials say the framework addresses national security concerns by paving the way for US ownership of TikTok’s operations, while China insists any final deal must not undermine its companies’ interests. The Biden administration has long argued that the app’s access to US user data poses significant risks, while ByteDance maintains its American arm operates independently and respects user privacy.

The law mandating a sale or ban, upheld by the Supreme Court earlier this year, is due to take effect on 17 September. Although the framework marks progress, key details remain unresolved, particularly over whether TikTok’s recommendation algorithm and user data will be fully transferred, stored, and protected in the US.

Experts warn that unless strict safeguards are included, the deal may solve ownership issues without closing potential ‘backdoors’ for Beijing. Concerns also remain over how much influence China retains, with negotiators linking TikTok’s fate to wider tariff discussions between the two powers.

If fully implemented, the agreement could represent a breakthrough in both trade relations and tech governance. But with ByteDance among China’s most powerful AI firms, the stakes go far beyond social media, touching on questions of global competition, national security, and digital sovereignty.

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Meta and TikTok win court challenge over EU fee

Europe’s General Court has backed challenges by Meta Platforms and TikTok against an EU supervisory fee imposed under the Digital Services Act (DSA). The companies argued that the levy was calculated unfairly and imposed a disproportionate financial burden.

The supervisory fee, introduced in 2022, requires large platforms to pay 0.05% of their annual global net income to cover monitoring costs. Meta and TikTok said the methodology relied on flawed data, inflated their fees, and even double-counted users.

Their lawyers told the court the process lacked transparency and produced ‘implausible’ results.

Lawyers for the European Commission defended the fee, arguing that group-wide financial resources justified the calculation method. They said the companies had adequate information about how the levy was determined.

The ruling reduces pressure on the two firms as they continue investing in the EU market. A final judgement from the General Court is expected next year and may shape how supervisory costs are applied to other major platforms.

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CJEU annuls DSA fees for Meta and TikTok

The General Court of the Court of Justice of the EU (CJEU) has annulled the European Commission’s 2023 supervisory fee decisions for Meta’s Facebook, Instagram, and TikTok under the Digital Services Act (DSA).

These platforms, designated as ‘huge online platforms’ (VLOP), were charged annual fees based on their average monthly user base to fund the EU oversight activities.

In 2024, Meta and TikTok filed a legal complaint against the Commission’s decision before the General Court of the CJEU.

The General Court found that the Commission improperly used implementing decisions to apply a key methodology for calculating user numbers, an essential element under the DSA that should have been established via a delegated act. As a result, this procedural misstep led to the annulment of the decisions.

However, the General Court did not dispute the platforms’ obligation to pay the fees. To avoid disruption, it has provisionally upheld the effects of the annulled decisions for up to 12 months.

Last, this gives the Commission time to revise its methodology in line with DSA requirements and issue new decisions.

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Trump downplays TikTok security concerns as ban stalls

US President Donald Trump has dismissed national security and privacy concerns surrounding TikTok as ‘highly overrated,’ signalling once again that the popular video-sharing platform is unlikely to face a ban anytime soon. Although Congress passed legislation requiring TikTok’s Chinese parent company, ByteDance, to sell its controlling stake or face a nationwide ban, Trump has repeatedly pushed back enforcement deadlines, with the next one set for 17 September.

Trump has already issued three extensions since taking office for his second term. The first came on 20 January, after TikTok briefly went offline when the court-approved ban took effect. Another followed in April, when a potential US buyout collapsed after China objected to Trump’s tariff moves. Trump insists that American buyers remain interested but says the process is ‘complex,’ justifying further delays.

Despite the legal framework for a ban, Trump’s administration has not faced significant legal challenges over his executive orders keeping TikTok active, which contrasts with many of his other directives. The White House even launched its own TikTok account this week, underscoring the platform’s mainstream role in US politics. Trump himself admitted he is a fan, noting its popularity among his children and younger voters.

Public opinion on TikTok remains deeply divided. A Pew Research Center survey found only about one-third of Americans now support a ban, a sharp decline from half of respondents in 2023. Roughly equal shares oppose a ban or remain undecided. Among supporters of restrictions, most cite concerns about user data security. Still, with Trump downplaying risks and signalling a willingness to keep the app alive, TikTok’s future in the US looks increasingly secure.

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Nexon investigates AI-generated TikTok ads for The First Descendant

Nexon launched an investigation after players spotted several suspicious adverts for The First Descendant on TikTok that appeared to have been generated by AI.

One advertisement allegedly used a content creator’s likeness without permission, sparking concerns about the misuse of digital identities.

The company issued a statement acknowledging ‘irregularities’ in its TikTok Creative Challenge, a campaign that lets creators voluntarily submit content for advertising.

While Nexon confirmed that all videos had been verified through TikTok’s system, it admitted that some submissions may have been produced in inappropriate circumstances.

Nexon apologised for the delay in informing players, saying the review took longer than expected. It confirmed that a joint investigation with TikTok is underway to determine what happened, and it was promised that updates would be provided once the process is complete.

The developer has not yet addressed the allegation from creator DanieltheDemon, who claims his likeness was used without consent.

The controversy has added to ongoing debates about AI’s role in advertising and protecting creators’ rights.

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TikTok adopts crowd‑sourced verification tool to combat misinformation

TikTok has rolled out Footnotes in the United States, its crowd‑sourced debunking initiative to supplement existing misinformation controls.

Vetted contributors will write and rate explanatory notes beneath videos flagged as misleading or ambiguous. If a note earns broad support, it becomes visible to all US users.

The system uses a ‘bridging‑based’ ranking framework to encourage agreement between users with differing viewpoints, making the process more robust and reducing partisan bias. Initially launched as a pilot, the platform has already enlisted nearly 80,000 eligible US users.

Footnotes complements TikTok’s integrity setup, including automated detection, human moderation, and partnerships with fact‑checking groups like AFP. Platform leaders note that effectiveness improves as contributors engage more across various topics.

Past research shows comparable crowd‑sourced systems often struggle to publish most submissions, with fewer than 10% of Notes appearing publicly on other platforms. Concerns remain over the system’s scalability and potential misuse.

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OpenAI and Shopify explore product sales via ChatGPT

OpenAI is preparing to take a commission from product sales made directly through ChatGPT, signalling a significant shift in its business model. The move aims to monetise free users by embedding e-commerce checkout within the chatbot.

Currently, ChatGPT provides product links that redirect users to external sites. In April, OpenAI partnered with Shopify to support this feature. Sources say the next step is enabling purchases without leaving the platform, with merchants paying OpenAI a fee per transaction.

Until now, OpenAI has earned revenue mainly from ChatGPT Plus subscriptions and enterprise deals. Despite a $300 billion valuation, the company remains loss-making and seeks new commercial avenues tied to its conversational AI tools.

E-commerce integration would also challenge Google’s grip on product discovery and paid search, as more users turn to chatbots for recommendations.

Early prototypes have been shown to brands, and financial terms are under discussion. Shopify, which powers checkout on platforms like TikTok, may also provide the backend infrastructure for ChatGPT.

Product suggestions in ChatGPT are generated based on query relevance and user-specific context, including budgets and saved preferences. With memory upgrades, the chatbot can personalise results more effectively over time.

Currently, clicking on a product shows a list of sellers based on third-party data. Rankings rely mainly on metadata rather than price or delivery speed, though this is expected to evolve.

Marketers are already experimenting with ‘AIO’ — AI optimisation — to boost visibility in AI-generated product listings, similar to SEO for search engines.

An advertising agency executive said this shift could disrupt paid search and traditional ad models. Concerns are growing around how AI handles preferences and the fairness of its recommendations.

OpenAI has previously said it had ‘no active plans to pursue advertising’. However, CFO Sarah Friar recently confirmed that the company is open to ads in the future, using a selective approach.

CEO Sam Altman said OpenAI would not accept payments for preferential placement, but may charge small affiliate fees on purchases made through ChatGPT.

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TikTok struggles to stop the spread of hateful AI videos

Google’s Veo 3 video generator has enabled a new wave of racist AI content to spread across TikTok, despite both platforms having strict policies banning hate speech.

According to MediaMatters, several TikTok accounts have shared AI-generated videos promoting antisemitic and anti-Black stereotypes, many of which still circulated widely before being removed.

These short, highly realistic videos often included offensive depictions, and the visible ‘Veo’ watermark confirmed their origin from Google’s model.

While both TikTok and Google officially prohibit the creation and distribution of hateful material, enforcement has been patchy. TikTok claims to use both automated systems and human moderators, yet the overwhelming volume of uploads appears to have delayed action.

Although TikTok says it banned over half the accounts before MediaMatters’ findings were published, harmful videos still managed to reach large audiences.

Google also maintains a Prohibited Use Policy banning hate-driven content. However, Veo 3’s advanced realism and difficulty detecting coded prompts make it easier for users to bypass safeguards.

Testing by reporters suggests the model is more permissive than previous iterations, raising concerns about its ability to filter out offensive material before it is created.

With Google planning to integrate Veo 3 into YouTube Shorts, concerns are rising that harmful content may soon flood other platforms. TikTok and Google appear to lack the enforcement capacity to keep pace with the abuse of generative AI.

Despite strict rules on paper, both companies are struggling to prevent their technology from fuelling racist narratives at scale.

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TikTok denies buying Trump memecoins after bribe claims

TikTok has strongly denied accusations by US congressman Brad Sherman that its owners purchased $300 million worth of Trump meme coins. Responding via its official policy account on X, the company labelled the claims false and misleading.

Sherman alleged that the memecoin purchase was effectively a bribe to influence Donald Trump’s stance on banning TikTok in the US.

However, the accusations appear based on a report involving GD Culture Group, a Nasdaq-listed company with no direct connection to TikTok or its parent ByteDance.

GD Culture reportedly announced plans to buy Trump coins and Bitcoin while using TikTok to distribute AI-enhanced content. Despite this, no financial link between the firm and Trump or TikTok has been confirmed.

The timing of the claim coincides with Trump’s third delay in enforcing the TikTok ban, raising further political speculation. Sherman, a long-time crypto critic, also said that Trump’s crypto ventures threaten the US dollar’s dominance.

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